The United States and Ukraine are on the verge of signing a mineral deal after months of fraught and chaotic negotiations, although a last-minute snag still needs to be ironed out.
Ukraine’s prime minister said First Deputy Prime Minister Yulia Svyrydenko was flying to Washington on Wednesday to sign the deal, which is central to Kyiv’s efforts to mend ties with President Donald Trump and the White House as the U.S. president tries to secure a peace settlement in Russia’s war in Ukraine.
The latest version of the minerals agreement was reached after Kyiv secured a significant concession from the Trump administration that only future military aid would count as the US contribution to the deal, according to the Financial Times.
Trump had indicated in February that he wanted access to Ukraine’s rare earth materials as a condition for continued U.S. support in the war, describing it as reimbursement for the billions of dollars in aid the U.S. has given to Kyiv.
But a famous Oval Office spat with Ukrainian President Volodymr Zelenskyy set negotiations back. However, the pair met face-to-face in Rome on Saturday at the Pope’s funeral.
According to a draft of the new agreement seen by Reuters, the two countries would create a joint reconstruction fund funded by 50% of profits from Ukraine’s new mineral licenses.
The draft agreement gives the U.S. preferential access to new Ukrainian natural resources deals but does not automatically hand Washington a share of Ukraine’s mineral wealth or any of its gas infrastructure, the draft showed.
Ukraine would not be required to pay back previous aid provided to the war-torn country by the U.S., with only future aid being counted as America’s contribution to the fund.
‘Truly, this is a strategic deal for the creation of an investment partner fund,’ Shmyhal said on Ukrainian television. ‘This is truly an equal and good international deal on joint investment in the development and restoration of Ukraine between the governments of the United States and Ukraine.’
However, a snag arose as Svyrydenko’s plane headed to Washington, with U.S. officials reportedly demanding that Ukraine sign three documents at once—the framework, a detailed fund agreement and a technical document—which Ukraine says is not immediately possible due to required parliamentary ratification, according to the Financial Times citing three people briefed on the situation.
Treasury Secretary Scott Bessent’s team told her she should ‘be ready to sign all agreements, or go back home,’ the Financial Times reports, citing three people familiar with the matter.
The U.S. is seeking access to more than 20 raw materials deemed strategically critical to its interests, including some non-minerals such as oil and natural gas. Among them are Ukraine’s deposits of titanium, which is used for making aircraft wings and other aerospace manufacturing, and uranium, which is used for nuclear power, medical equipment and weapons. Ukraine also has lithium, graphite and manganese, which are used in electric vehicle batteries.
Unlike an earlier draft, the deal would not conflict with Ukraine’s path towards European Union membership — a key provision for Kyiv.
The two sides signed a memorandum, published on April 18, as an initial step towards clinching an accord on developing mineral resources in Ukraine. In the memorandum, they said they aimed to complete talks by April 26 and to sign the deal as soon as possible.
Reuters and The Associated Press contributed to this report.